If,over a Period of a Year,a Country's Import Price Index

question 20

Multiple Choice

If,over a period of a year,a country's import price index rises from 100 to 120 and its export price index rises from 100 to 110,its index for the terms of trade has

• A)risen from 100 to 110.
• B)risen to 109.09.
• C)risen from 100 to 120.
• D)fallen to 91.67.
• E)fallen from 110 to 100.

Recognize the role of technology and specialization in achieving economies of scale.

Identify conditions that lead to diseconomies of scale.

Explore how business strategies like mergers can create value through economies of scope.

Understand the impact of learning curves on production costs.